Rp 138.4t needed for growth

JAKARTA (JP): The municipality needs Rp 138.4 trillion (US$57.3 billion) in private investment to reach a target of 8.23 percent economic growth, Deputy Governor for Administrative Affairs Idroes said yesterday.

He said the total investment needed to meet the annual target during the current Five-Year Development Plan (Repelita VI), which will end in 1999, was Rp 146.7 trillion. Of this 5.3 percent or Rp 8.3 trillion would be drawn from government investment.

At a meeting on the city's investment coordinating board, Idroes said for this purpose the city should increase services for investors.

He did not say how much had been invested so far.

Idroes said several factors which affected investment were land use, location and infrastructure. Others were procedures, law, security and services, he said.

He said he hoped the city could avoid a high cost economy.

"This could force investors to leave for other countries," he said. Competitors include Kuala Lumpur, Bangkok, Manila and Pnom Penh, Idroes said.

All permits must be clear about basic policies, procedures, the time needed to secure permits and costs to be paid by investors. (anr)